The engineering manager of Company A proposes to install an automated barcode scanner costing $4000. He estimates that he can save about 100 hours of labor time per month, as products can now be scanned much faster. He reasons that at the wage rate of $15 per hour, the benefit for using the automated bar-code scanner is $1500 per month, and the scanner can be paid back in 2.67 months.

As the president of Company A, do you agree or disagree with the way he computes the cost–benefit ratio? Why or why not?